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SCIO briefing on China's economic performance in first 3 quarters of 2024

China.org.cn | December 3, 2024

Shou Xiaoli:

Due to time constraints, we only have time for two final questions.

Economic Daily:

The CPC Central Committee has called for accelerating the cultivation of new quality productive forces. Could you please provide an update on the development of new quality productive forces in the first three quarters of this year? Thank you.

Sheng Laiyun:

Thank you for your question. Developing new quality productive forces represents both an inherent requirement and a central focus in promoting high-quality development. Therefore, Party committees and governments at all levels attach great importance to this task and resolutely implement the decisions and deployments of the CPC Central Committee, tailoring the development of new quality productive forces according to local conditions. Our statistical data shows clear evidence of progress, with accelerated development of new quality productive forces.

First, from the perspective of investment in innovation, the investment continues to increase. Last year, China's total research and development (R&D) expenditure exceeded 3.3 trillion yuan for the first time, ranking second in the world, and playing an important role in driving high-tech industries and fostering innovation. This year, a report by the World Intellectual Property Organization (WIPO) showed that China's innovation index ranking has risen by one position, and now stands at 11th. Additionally, from the perspective of high-tech industry investment, investment in high-tech industries increased by 10% year on year in the first three quarters. As we know, fixed asset investment in the first three quarters increased by 3.4%, meaning that investment in high-tech industries was 6.6 percentage points higher. Furthermore, the contribution rate of high-tech industry investment to the overall growth of fixed asset investment reached 27.1%. Therefore, investment in innovation is continuously increasing.

Second, from the perspective of new quality productive forces, innovative outcomes are continuously emerging. In the first eight months of this year, data from intellectual property-related departments indicate that the number of invention patents granted increased by more than 20% year on year. A more advanced quantum computer has been launched, and more space missions have been carried out, along with major national projects and significant achievements continuing to emerge.

Third, new industries are developing at an accelerating pace. The added value of high-tech manufacturing enterprises above designated size increased by 9.1% year on year in the first three quarters, which is 3.3 percentage points higher than the growth rate of industrial enterprises above designated size. The added value of information transmission, software and information technology service industries increased by 11.3% in the first three quarters, which also significantly exceeded the growth rate of the overall service industry. The digital economy is advancing quickly, and the added value of digital product manufacturing is growing fast.

Fourth, new business forms and models are rapidly forming and expanding. Online retail sales continue to experience a high growth rate, with the online retail sales of physical goods increasing by 7.9% year on year in the first three quarters. Instant retail and livestream e-commerce also continue to experience high growth rates.

Based on the above circumstances, new quality productive forces are being rapidly cultivated and formed. However, this process involves a transition from quantitative to qualitative changes. Our country’s economic transformation and high-quality development ultimately depend on technological support and the rapid formation of new quality productive forces. The third plenary session of the 20th CPC Central Committee clearly proposed improving the institutions and mechanisms for fostering new quality productive forces in line with local conditions. A significant portion of the latest incremental policies is aimed at promoting the development of new quality productive forces. Therefore, we believe that with the implementation of these incremental policies and the reforms in place, there is considerable potential for the development of China’s new quality productive forces. Thank you.

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